Saudi industrial output rises 2% in March on strong manufacturing gains

12/05/2025 02:26 AST

Saudi Arabia's industrial production index rose 2 percent year on year in March 2025, driven by strong growth in manufacturing, particularly in the chemical and food industries, official data showed.

The IPI increased to 106.5 in March from 105.4 in February, reflecting a 1.1 percent rise on a monthly basis, according to preliminary data from the General Authority for Statistics.

The manufacturing sub-index registered a 5.1 percent annual increase in March compared to the same month in 2024. This growth was supported by a 14.3 percent uptick in the manufacture of chemicals and chemical products and the manufacture of food products, which increased by 6.9 percent.

The data underscores continued momentum in the Kingdom's non-oil industrial base, a key pillar of the Vision 2030 economic diversification strategy.

In a release, GASTAT stated: "On a monthly basis, the sub-index of manufacturing activity showed an increase of 2.9 percent, supported by the rise in the activity of the manufacture of chemicals and chemical products, which increased by 7.2 percent, and the manufacture of food products which increased by 12.4 percent."

Mining and quarrying activity, which includes crude oil extraction, slipped 0.2 percent year on year in March. Saudi Arabia produced 8.96 million barrels of oil per day during the month, slightly down from 8.97 million bpd a year earlier. On a monthly basis, mining activity ticked up 0.1 percent.

Other sectors showed mixed performance. The output of non-metallic mineral products increased 6.1 percent year on year, while the basic metals segment fell 6.6 percent but edged up 1.4 percent from February.

The production of electrical devices grew 4 percent year on year but declined 1.1 percent month on month.

The paper and paper products segment saw a 1 percent annual increase and a 0.6 percent rise from the previous month. Furniture output contracted 15.7 percent year on year but rose marginally, by 0.2 percent, on a monthly basis.

Other economic activities within the manufacturing sector grew by 0.4 percent year on year and 0.3 percent month on month.

Meanwhile, the electricity, gas, steam, and air conditioning supply sub-index dropped 0.9 percent year on year and 7.7 percent month on month. In contrast, water supply, sewerage, and waste management activities surged 15 percent annually and 3.7 percent from February.

Overall, oil-related industrial activities rose 0.5 percent annually and 0.1 percent monthly in March. Non-oil activities, which encompass manufacturing and utilities, expanded 5.6 percent year-on-year and 3.3 percent month on month.

The Industrial Production Index measures changes in industrial output based on the International Standard Industrial Classification framework, covering mining, manufacturing, utilities, and waste management sectors.

Arab News